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Garza Company expects to have a cash balance of $46,000 on January1, 2008.

Relevant monthly budget data for the first 2 months of 2008 are asfollows.

Collections from customers: January $85,000, February$150,000.

Payments for direct materials: January $50,000, February$70,000.

Direct labor: January $30,000, February $45,000. Wages are paid inthe month they are incurred.

Manufacturing overhead: January $21,000, February $25,000. Thesecosts include depreciation of $1,000 per month. All other overheadcosts are paid as incurred.

Selling and administrative expenses: January $15,000, February$20,000. These costs are exclusive of depreciation. They are paidas incurred.

Sales of marketable securities in January are expected to realize$10,000 in cash. Garza Company has a line of credit at a local bankthat enables it to borrow up to $25,000. The company wants tomaintain a minimum monthly cash balance of $20,000.

Prepare a cash budget for January and February. (List amounts fromlargest to smallest eg 10, 5, 3, 2. If answer is zero, please enter0. Do not leave any fields blank.)

GARZA COMPANY
Cash Budget

For the Months Ending February 29, 2008
January February
Beginning cash balance

$


$

Add: Receipts





Total receipts



Total available cash



Less: Disbursements







Total disbursements



Excess (deficiency) of available cash over cash disbursements
Financing





Ending cash balance

$


$

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Lelia Lubowitz
Lelia LubowitzLv2
28 Sep 2019

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Hudson Company expects to have a cash balance of $43,000 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.

1. Collections from customers: January $95,000, February $142,000

2. Payments to suppliers: January $40,000, February $50,000

3. Wages: January $34,000, February $40,000. Wages are paid in the month they are incurred.

4. Administrative expenses: January $24,000, February $31,000. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.

5. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred.

6. Sales of short-term investments in January are expected to realize $12,000 in cash. Hudson has a line of credit at a local bank that enables it to borrow up to $40,000. The company wants to maintain a minimum monthly cash balance of $25,000.

Prepare a cash budget for January and February.

Blue Spruce Corp. prepares monthly cash budgets. Here arerelevant data from operating budgets for 2017.

January February

Sales $360,700 $401,100

Purchases 121,500 131,400

Salaries 84,600 81,000

Administrative expenses 71,000 73,700

Selling expenses 79,000 86,900

All sales and purchases are on account. Budgeted collections anddisbursement data are given below. All other expenses are paid inthe month incurred except for administrative expenses, whichinclude $1,200 of depreciation per month.

Other data.

1. Collections from customers: January $328,100;February$378,200.

2. Payments for purchases: January $111,400;

February $144,900.

3. Other receipts: January: collection of December 31, 2016,notes receivable $18,400; February: proceeds from sale ofsecurities $5,500.

4. Other disbursements: February $13,000 cash dividend.

The company’s cash balance on January 1, 2017, is expected to be$47,400. The company wants to maintain a minimum cash balance of$45,910.

Prepare a cash budget for January and February.

2. (Cash Disbursements) Snobby CrabShack expects to make purchases in the first quarter of 2009 asfollows:

January $84,000

February $96,000

March $78,000

Purchases in December in 2008 are expected to be $87,000. Thecompany expects that 55% of a month’s purchases will be paid in themonth of purchase and 45% will be paid in the following month.Other cash operating expenses per month are $60,000. In addition,the company has $8,000 of depreciation per month.

Estimate cash disbursements related to purchases for eachmonth of the first quarter of 2009. What are the accounts payablerelated to purchases at March 31, 2009?

3. (Cash Budget) Snobby Crab Shackhas a cash balance at December 31, 2008 of $4,050 and wants tomaintain an ending cash balance of $2,000 per month, what isthe cash balance at the end of January, February and March 2009(assume any loans are non-interest bearing).

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